 "Zee Ent slips 7% as 40% shareholders vote against promoter warrants")
Zee Entertainment Enterprises share price was under pressure in the morning deals and slipped 6.7 per cent in trade on Friday on BSE, logging an intraday low at ₹133.05 per share. At 9:45 AM, Zee Entertainment shares were down 3.14 per cent at ₹137.45 per share on the BSE. In comparison, the BSE Sensex was down 0.21 per cent at 83,012.15. The company's market capitalisation stood at ₹13,202.34 crore.
The 52-week high of the stock was at ₹163.9 per share and 52-week low of the stock was at ₹89.29 per share.
Why were Zee Entertainment shares falling in trade?
The selling on the counter came after the company failed to secure the required shareholder votes to raise funds by issuing warrants. This move, according to reports, blocks plans by the founding Goenka family to increase their stake in the broadcaster.
Only 59.5 per cent of shareholders agreed to raise funds through issuing warrants, falling short of the 75 per cent majority required for approval.
"While the efforts being taken have augured well for the company, in order to further safeguard it from a future growth perspective, it is important to keep a sufficient war chest," Zee said in a statement, citing a rapidly shifting market and fierce industry competition.
52.2 per cent of public institutional shareholders and 20.2 per cent of public non-institutional shareholders voted against the fund raise.
"The board and the management of the company have noted that around 60 per cent of the shareholders who participated in the voting process, have expressed their support towards the resolution pertaining to the issuance of fully convertible warrants to promoter group entities, and are grateful for their support. The board and the management also respect the decision taken by the remaining shareholders," the company filing read.
Public investors hold 96 per cent of Zee's shares, with nearly 39 per cent held by domestic and foreign institutions including HDFC Mutual Fund, Life Insurance Corp of India, and Norway's Government Pension Fund Global.
In June 2025, after reviewing alternatives encompassing new growth initiatives, the board approved the enhancement of promoter shareholding by issuance of up to 16,95,03,400 fully convertible warrants to the promoter group entities on a preferential basis, at ₹132 per warrant.
The promoters of the company were said to participate in the fund-raising exercise by investing ₹22,37,44,48,800 for the company’s next phase of growth, taking the total promoter shareholding to 18.39 per cent, according to the filing. The preferential issue was subject to shareholders' approval.